Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Legal Finance topic
No spam. Unsubscribe anytime.
Leawood approves retention to file claim in Visa/Mastercard settlement, directs staff to seek lower fee
Summary
Council voted unanimously to authorize the city to retain counsel to file a claim in the Visa/Mastercard interchange-fee class-action settlement, directing staff to attempt to negotiate a lower contingency fee than the proposed 25% and to file an initial claim if negotiations cannot be completed before the filing deadline.
The Leawood governing body voted unanimously to authorize the city to retain Myers Longhofer to file a claim in a national class-action settlement involving Visa and Mastercard interchange fees, while directing staff to try to negotiate a more favorable contingency-fee arrangement.
City legal staff, represented by Miss Bennett, summarized the settlement as a court-approved class action with a total fund of about $5.6 billion covering transactions from Feb. 2005 through Feb. 2019. She said any person or entity that paid qualifying fees during the class period can file a claim and receive a pro rata share of the settlement based on reported fees. “A claim must be filed by midnight tomorrow,” Bennett said, noting the tight filing deadline and that the proposed firm would work on a contingency basis (25% of recovery).
Council members questioned expected staff workload and the likely recovery for a municipality the size of Leawood. Finance staff and legal counsel explained that the initial claim filing requires limited work; if the settlement administrator’s estimate is disputed, additional work could be needed to identify historical payment processors and transaction records. Legal staff said the retained firm would assist in that follow-up if required.
Several council members—including Council Members Larson and Harrison—expressed concern that a 25% contingent fee was high for what might be a modest recovery. Council Member Larson moved to approve the resolution while directing staff to negotiate a more favorable contingent-fee structure; the motion also directed staff that if negotiations did not yield an improved fee before the filing deadline, staff should proceed with the proposed retention and initial claim filing so the city does not forfeit the opportunity.
The resolution passed unanimously. City staff said they may file the initial claim themselves if the council prefers to do so, and that the city can hire other counsel later if needed to challenge any settlement administrator estimates.
